Tele2 Posts Third-Quarter Earnings in Line With Expectations
Telecom company Tele2 reports solid third-quarter earnings in line with expectations, with positive growth outlook and focus on 5G technology.
Stockholm-based telecom company, Tele2, recently released its third-quarter earnings results, which met expectations and maintained guidance for both the full-year and midterm.
Tele2 reported a net profit of 1.06 billion kronor ($97.1 million) for the quarter, compared to SEK994 million in the same period last year. FactSet analysts had predicted SEK1 billion. Underlying earnings before interest, taxes, depreciation, amortization, and the cost of leased assets (Ebitdaal) - the company's preferred metric - increased by 3% to SEK2.78 billion.
Furthermore, revenue experienced a 2.4% rise, reaching SEK7.25 billion, slightly lower than the FactSet forecast of SEK7.35 billion. Tele2 attributed this discrepancy to inflationary pressures despite positive growth in end-user service revenue and cost savings during the quarter.
Chief Executive Kjell Johnsen hailed the impressive performance in the Baltics and emphasized Tele2's fast-paced progress in rolling out 5G technology. The company's focus now lies in swiftly installing 5G infrastructure and upgrading 4G capacities.
Tele2 maintains its target of achieving low to mid single-digit growth in end-user service revenue by 2023 and in the midterm. Additionally, the company expects capital expenditure to sales ratio to remain below 14% by 2023, with a more specific target of 10% to 14% over the midterm. For 2023, Tele2 anticipates low single-digit growth in underlying Ebitdaal, followed by mid-single-digit growth in the midterm.
Tele2's results indicate solid performance and a positive outlook for future growth and development.